Oct. 12 (Bloomberg) -- Crude oil rose to a record for a sixth day, reaching $54.45 a barrel in New York, after the International Energy Agency said demand this year is rising faster than expected, increasing concern about U.S. supplies.
``Strong demand through the end of the year will tighten supplies and capacity further,'' said Jason Kenney, an analyst at ING Financial Markets in Edinburgh. ``A terror outrage that takes out supply from the market could send prices bursting through $60 and beyond.'' They are up more than $10 a barrel in the past month.
World oil use will jump by 2.71 million barrels a day to 82.4 million barrels a day this year, the IEA said in a monthly report, up 190,000 barrels a day from what it predicted last month. The Agency cut its forecast for 2005 demand growth because oil prices, up 66 percent this year, will restrain the economy.
Crude oil for November delivery was at $54.04 a barrel in electronic trading on the New York Mercantile Exchange at 12:37 p.m. in London, up 0.8 percent today and 26 percent since Hurricane Ivan forced Gulf of Mexico producers to cut output. Storm damage has reduced U.S. pumping in the region by at least a quarter for a month and imports have slowed.
November Brent crude climbed to a record $51.50 a barrel and was up 34 cents at $51 a barrel on London's International Petroleum Exchange, capping a 69 percent gain this year.
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http://quote.bloomberg.com/apps/news?pid=10000086&sid=abePn2NNI3jQ&refer=news_indexOil shoots past $54
By TERRY WEBER
Globe and Mail Update
Oil prices shot past $54 (U.S.) a barrel Tuesday to touch another record high after the International Energy Agency said world demand is climbing faster than expected and warned the impact is now showing on the global economy.
In New York, light, sweet crude futures rose 45 cents to $54.09. In overnight activity, crude prices went as high as $54.45, the highest level in the 21 years that futures contracts have been traded on the New York Mercantile Exchange.
U.S. oil prices have risen more than 60 per cent since the start of the year. Tuesday marked the fifth session in a row in which crude prices have set a record.
Supply concerns in Nigeria and the lingering impact of recent hurricane activity on production levels in the Gulf of Mexico were key for traders. About 17 million barrels of production have been lost in the Gulf of Mexico since Hurricane Ivan moved through the region last month
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